Guide to Debt Settlement Negotiation

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Debt is such a drag that it causes anxiety and depression. Receiving debt collection notices will gradually suffocate you. Due to these circumstances, opting for a debt settlement would feel like a daunting task. The truth is, most lenders are open to it. If you know how to speak to your lenders, you might be able to settle your debt and offload the pressure you are facing.

To successfully settle your debt, consider this guide.

Know your Debt Fully

If you’re planning to settle your debt, it is important that you have all the facts and information straight. You should know not just the terms of your debt but also the name of your creditor, the total amount you owe, your outstanding balance, and everything else that could help you settle your debt.

Be Frank and Clear

Don’t make your situation even more difficult with drama. If you want to settle your debt, you should be frank and clear with your situation. Explain to your lender how much you could pay or why you cannot pay your debt. It’s best to tell the truth. It’s easier and it will help with your case if you are honest.

Propose a Reasonable Repayment Plan

After explaining your financial situation, propose a repayment plan that is fair for you and your lender.

Put Everything in Writing

When finalising your debt settlement, it is important to get everything in writing. Be sure to make a written agreement that spells out the exact amount you have to pay and the exact balance. This is a necessary action to protect yourself and avoid further troubles.

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